Why didn't BTC follow the sharp drop in the US stock market?
History doesn't repeat itself, but it often rhymes. The last time the US stock market plummeted on April 3, BTC showed a lagging effect, not following the drop immediately, and only started to decline on April 7.
This time, the internal political conflicts between Trump and Powell in the US have escalated, leading to a 'triple kill' in stocks, bonds, and currencies.
Currently, BTC has broken through the price of 88,000 with no volume, but has not stabilized. The bullish sentiment still carries significant risks. As of now, the US stock market has fallen by 3.61%. This situation can be compared to March 12, 2020, when the US stock market experienced a circuit breaker, and BTC did not respond with an immediate drop, even rebounding at that time. While everyone was cheering, crypto assets were halved, catching everyone off guard.
At present, the international situation is turbulent and unpredictable, without any accurate data to rely on. Moreover, the Federal Reserve is not cutting interest rates, resulting in insufficient market liquidity. The long-term economy remains fragile, and the US stock market could experience a circuit breaker at any time, which is uncertain.
So it's not that BTC doesn’t follow, but that it follows late! Respect the risks, maintain sharp insights, and adjust investment strategies while also exercising control over your hands.
